Two Strong Dividend Stocks Worth a Closer Look

Some blue chip bargains stand out amid the market's recent volatility.

Mar 25, 2025

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Intro

💡 Invest in companies you believe in - W. Buffett

In recent weeks, the broader market has trended toward a correction. The S&P 500 is down roughly 10% from its high, and the tech-heavy Nasdaq Composite has dropped about 14% from its peak. Don’t be alarmed—market pullbacks are a normal part of long-term investing, especially after such a strong rally since early 2023.

When fear takes over the market, it’s often the best time to hunt for bargains. As Warren Buffett famously said: "Be fearful when others are greedy, and greedy when others are fearful."

Here are two blue-chip dividend stocks that look like great buys right now.

#1 A Railroad Stock Selling Off Due to Tariff Drama

The ongoing tariff dispute between the United States and Canada has made headlines, and Canadian National Railway (CNI) has felt the pressure—its stock has declined nearly 30% from its high.

As one of North America’s leading railroads, Canadian National Railway operates a wide-moat business with steady, long-term demand. The company’s 18,800 miles of rail across Canada and the U.S. transport essential goods like petroleum, chemicals, grain, and other commodities.

History of the Company

Canadian National Railway (CN) was formed in 1919 through the nationalization of several struggling railroads, including Grand Trunk Railway, Intercolonial Railway, and Canadian Northern Railway. By 1923, it became a unified national network, playing a key role in Canada’s economic growth.

Over the decades, CN expanded into telecommunications and air transport before refocusing solely on freight. In 1995, it was privatized, transforming into a highly efficient and profitable enterprise with operations across Canada and the U.S.

A Proven Dividend Eagle 🦅

Rail remains the most efficient way to move these products, and that’s unlikely to change anytime soon. While tariffs and recession fears could create short-term headwinds, Canadian National Railway’s strong management has successfully navigated past economic volatility. This is evident in its 29 consecutive years of dividend increases.

Today, Canadian National Railway’s dividend yield sits at 2.55%, its highest level ever outside of the 2008 financial crisis.

🦅 Dividend Eagles

An updated compilation of 100+ top-performing dividend stocks with 15+ years of consecutive dividend increases, selected based on MaxDividends’ strict criteria.

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Companies featured on the Dividend Eagles list have a proven track record of regular and increasing dividend payouts. This ensures you receive a reliable income, whether you're planning for retirement or seeking additional cash flow.

The Dividend Eagles list offers precisely that—a gateway to financial growth and stability.

Beyond dividends, these companies often exhibit strong fundamentals and growth prospects. Investing in them not only provides income but also the opportunity for your investment to grow over time.

This is how we build our own growing passive income and long-term wealth.

Financial Statement

If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.

Here is a quick dive into Canadian National Railway over last years

MaxDividends App: Canadian National Railway Financial Statement. Revenue.

The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.

MaxDividends App List of Top Dividend Stocks

👉 Learn More about Financial Score

Our Paid Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like Canadian National Railway are on that list, too.

Future Growth Prospects for Canadian National Railway.

Analysts estimate the company’s earnings will grow at an average rate of 9.6% annually in the long run. Additionally, the dividend is well covered, with a payout ratio of only 44% based on estimated 2025 earnings. The stock’s sell-off seems more like noise than a fundamental issue, making it a compelling buy.

Current Dividend Yield 2.33% higher than 10 Years Average 1.60% Dividend Yield

Current Payout Ratio 46.30% higher than average 10 Years Payout Ratio 34.28%

With MaxDividends, it's easier than ever to access top dividend companies, track your results, and explore new dividend ideas.

Dividend Eagles

The MaxDividends Top Stocks List features ~100 of the most reliable dividend companies in the U.S. market, each with 15+ years of consecutive dividend increases. These stocks are carefully selected based on MaxDividends' strict criteria for consistency and reliability.

Dividend Kings

Dividend Kings represent the elite tier of dividend growth stocks. With 50+ years of consecutive dividend increases, these companies offer unparalleled income stability, making them a top choice for investors seeking long-term reliability in an unpredictable market.

Dividend Aristocrats

With 25+ years of consecutive dividend increases, Dividend Aristocrats are among the strongest dividend growth stocks. These companies have a proven track record of not only maintaining but consistently increasing their dividends, often outperforming the broader market over time.

Canadian National Railway Total Revenue over 10 Years

#2 A Construction Stock on Sale Amid Real Estate Concerns

Carlisle Companies (CSL) isn’t a household name, but it plays a crucial role in the real estate industry. The company produces construction and waterproofing materials for commercial buildings, benefiting from long-term demand in the sector.

Carlisle has grown steadily for decades, driven by commercial construction across the U.S. Looking ahead, the need for efficiency upgrades and renovations could fuel even more growth. The average commercial property in America is over 53 years old, which means modernization is becoming increasingly necessary.